Establishment of Budget and Assessments Sample Clauses

Establishment of Budget and Assessments a. Unless the Directors otherwise decide, the fiscal year of the Association shall be a calendar year. On or before the end of each Assessment Year, the Directors shall cause to be prepared an estimated annual budget for the next Assessment Year. Such budget shall take into account the estimated expenses and cash requirements for the Assessment Year, including, without limitation, salaries, wages, payroll taxes, supplies, materials, parts, services, maintenance, repairs, replacements, landscaping, including without limitation sprinkler systems, insurance, fuel, power, water and other common utilities, management fees, expenses associated with Common Ground and other common expenses (as distinguished from individual mortgage payments, real estate taxes and individual telephone, electricity, gas, and other individual utility expenses billed or charged to the separate Owners on an individual or separate basis rather than a common basis). The budget shall furthermore take into account the repayment by the Association to Declarant of a loan entered into by the Directors of the Association and the Declarant evidenced by a promissory note in the amount of the Declarant’s cost of initial construction of the amenities located on the Common Grounds, including without limitation, the swimming pool and clubhouse (the “Amenities Note”). The budget shall also take into account additional expenses related to any class of Lots that is to provide for provide for maintenance by the Association or will incur charges not attributable to the other Lots. In the event that such Association maintained Lots are created, then the maintenance responsibilities of the Association shall be expressly stated in an amendment to this Declaration. The annual budget may provide for a reserve fund for contingencies for the Assessment Year and a reserve fund for replacements, in reasonable amounts as determined by the Directors. To the extent that the Assessments and other cash income collected from the Owners during the preceding years shall have been more or less than the actual expenditures for such preceding year, the surplus or deficit, as the case may be, shall also be taken into account. b. Until commencement of the first Assessment Year after Declarant has transferred control of the Development pursuant to Article V, Section 1 hereof, the Owners of each Lot shall pay, on or before the 1st day of each Assessment Year, as such Lot's respective annual Assessment, such Lot's proportionate ...